Tech World: Aflac Continues its Strong Earnings Growth Momentum
May 13, 2008
Aflac, Incorporated (
AFL) engages in the marketing and sale of supplemental health
and life insurance plans in the United States and Japan. It sells
cancer plans, care plans, general medical indemnity plans,
medical/sickness riders, living benefit life plans, ordinary life
insurance plans, and annuities in Japan.
The company also sells cancer plans and various types of health
insurance, including accident/disability, fixed-benefit dental,
sickness and hospital indemnity, vision care, hospital intensive
care, long-term care, ordinary life, and short-term disability
plans in the United States. Aflac underwrites individually issued
policies, and markets its policies through independent agents, as
well as through independent corporate agencies, and individual
agencies. The company was founded in 1955 and is headquartered in
Columbus, Georgia.
The company''s core business is to design insurance policies
that can be used to help with those out-of-pocket expenses not
covered by the existing primary insurance coverage of U.S.
consumers. They continue to develop new products that meet the
needs of the market. Aflac focuses its products on the worksite
market because that is where most Americans buy health insurance.
Many of the workers insured are employed by small businesses.
The people who sell their products at worksites in the United
States are independent sales associates and sales coordinators who
manage defined geographical territories. Nationally, there are more
than 60,000 licensed Aflac sales associates and coordinators who
market their insurance products.
The stock is solid fundamentally with great return on equity and
strong earnings growth. The latest earnings announcement showed
that net income for the last quarter increased more than 14 percent
on better-than-expected sales in Japan. Aflac reported net
income of $474 million, or 98 cents a share, up from $416 million,
or 84 cents a share, a year earlier. In addition, revenues surged
14 percent to $4.27 billion.
This stock is in a distinct Elliott Wave-4 buy formation,
projecting gains into the $72 per share area by late July. The
company does have a liquid options market that currently extend out
to January of 2010, allowing the options strategist more than
enough time to trade this opportunity.
Figure 1: Daily Elliott Wave-4 Buy Pattern for Aflac
Incorporated
(Source: Profit Source)
Happy Trading.
Jeff Neal
Senior Writer, Options Strategist & Profit Strategies Radio
Show Market Correspondent
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